Meta CEO Mark Zuckerberg showed up in court on Monday to give testimony in a big antitrust case that could change the company’s path forward. The US Federal Trade Commission (FTC) says Meta has a monopoly on social media by buying up popular apps like Instagram and WhatsApp to wipe out rivals.
Daniel Matheson, who leads the FTC’s legal team, kicked off the trial by saying users don’t have any other good choices because the company runs so many social networking sites. The FTC claims Meta bought WhatsApp and Instagram in 2012 and 2014 on purpose to get rid of new competitors and keep its grip on the personal networking market.
Zuckerberg defended the buyouts stating they aimed to enhance user experience and spark new ideas. Also, he pointed out that users now engage more with content outside their close circle leading to platform growth.
The FTC argues that Meta’s huge size has limited consumer options, while the company’s lawyers claim it faces tough rivals in the global market from apps like TikTok, Snapchat, YouTube, and even Apple’s iMessage.
The FTC also debated about internal messages exchanged during the buyout. One email reveals Zuckerberg describing Instagram’s purchase as a way to neutralize the rival. Another email indicated that Meta’s Facebook Camera was falling behind Instagram. Zuckerberg confirmed these emails were real but argued they were misinterpreted and didn’t show the company’s overall long-term plan, which involved big spending on both platforms.
The lawyers also highlighted that regulators had approved both purchases at the time, and they asked why the case was reopened after so many years. However, the FTC claimed that Meta’s actions, like slowing down development to protect Facebook’s market power show anti-competitive behavior.
If the FTC comes out on top in court, Meta might have to sell off Instagram and WhatsApp. This could hurt the company’s main ad business.